WHEREAS, the State
of New Jersey has a compelling interest in awarding public works contracts
so as to ensure the highest standards of quality and efficiency at the
lowest responsible cost; and

WHEREAS, a project
labor agreement, which is a form of pre-hire collective bargaining agreement
covering all terms and conditions of a specific project, can endure the
highest standards of quality and efficiency at the lowest responsible
cost on appropriate public works projects; and

WHEREAS, the State
of New Jersey has a compelling interest that a highly skilled workforce
be employed on public works projects to ensure lower costs over the lifetime
of the completed project for repairs and maintenance; and

WHEREAS, project
labor agreements provide the State of New Jersey with a guarantee that
public works projects will be completed with highly skilled workers; and

WHEREAS, project
labor agreements allow public agencies to more accurately predict the
actual cost of the public works project;

WHEREAS, the use
of project labor agreements can be of specific benefit for complex construction
projects of large scope such as the school construction projects that
the State of New Jersey will imminently embark upon and that are the largest
school construction projects in the history of New Jersey and that have
been mandated by the Supreme Court of New Jersey; and

WHEREAS, the use
of project labor agreements shall be considered on a project-by-project
basis where such agreements benefit the interest of the State of New Jersey,
from a cost, efficiency, quality, safety and/or timeliness standpoint;
and

NOW, THEREFORE, I,
James E. McGreevey, Governor of the State of New Jersey, by virtue of
the authority vested in me by the Constitution and by the Statutes of
this State, do hereby Order and Direct:

Executive Order
No. 11 (Whitman) is hereby rescinded and is superseded by this Executive
Order No. 1.

On a project-by-project
basis, a state department, authority or instrumentality shall include
a project labor agreement in a public works project where it has been
determined that such agreement advances the state's interests of cost,
efficiency, quality, safety, timeliness, skilled labor force, labor
stability and the state's policy to advance minority- and women-owned
businesses as set forth in Executive Order No. 84 (Florio).

Where it has
been determined that a project labor agreement is appropriate for
a particular public works project, a state department, authority or
instrumentality responsible for implementing the project shall either
(a) in good faith negotiate a project labor agreement, through the
office of the Commissioner of Labor, with labor organizations engaged
in the construction industry, or (b) condition the award of a project
manager or general contractor upon a requirement that such manager
or contractor negotiate in good faith a project labor agreement with
labor organizations engaged in the construction industry and, if necessary,
utilize the office of the Commissioner of Labor to reach such agreement.

Pursuant to this
Order, any project labor agreement:

shall set
forth effective, immediate and mutually binding procedures for
resolving jurisdictional, labor disputes, and grievances arising
before the completion of work;

shall contain
guarantees against strikes, lockouts, or other similar actions.

shall standardize
the terms and conditions of employment of labor on the public
works project.

shall permit
flexibility in work scheduling and shift hours and times.

shall ensure
a reliable source of skilled and experienced labor.

shall further
public policy objectives as to improved employment opportunities
for minorities, women and the economically disadvantaged in the
construction industry;

shall permit
contractors and subcontractors to retain a percentage of their
current workforce in addition to labor referred through the signatory
labor organizations;

shall permit
the selection of the lowest qualified bidder, without regard to
union or non-union status at other construction sites, and

shall be
made binding on all contractors and subcontractors on the public
works project through the inclusion of appropriate bid specifications
in all relevant bid documents.

Any decision
to use a project labor agreement in connection with a public works
project by a state agency, authority or instrumentality shall be supported
by a written, publicly disclosed finding by such agency, authority
or instrumentality seeing forth the justification for use of the project
labor agreement.

All state agencies,
authorities and instrumentalities are hereby ordered to ensure that
all public works projects are implemented in a manner consistent with
the terms of this Order and are in full compliance with all statues,
regulations and executive orders, including Executive Order No. 84
(Florio).

This Order shall
take effect immediately and is intended to have prospective effect
only.

Given, under
my hand and seal this
17th day of January
in the Year of Our Lord, Two
Thousand and Two, and of the
Independence of the United
States, the Two Hundred and
Twenty Sixth.